“This is mainly due to delays in the procurement of equipment in the current tight engineering, procurement and construction services market,” SPC said in a written statement.

First oil was originally due to begin flowing from Oyong late this month and is expected to be at an initial rate of 5000-8000 barrels per day gross.

The Oyong partners have also have signed a gas sales agreement and the gas development phase of the oil/gas development is underway.

It is expected that the Wortel gas field will later be tied into this infrastructure.

First Oyong gas production is scheduled for the end of 2008 and is expected to be 60 million cubic feet per day gross.

The field has proven and probable (2P) reserves of 97 billion cubic feet.

The Oyong field was discovered in 2001 following the drilling of the Oyong-1 exploration well.

Stakeholders in the Sampang PSC are Santos (operator with 40.5%), Singapore Petroleum (36%), Cue (13.5%) and PT Petrogas Oyong Jatim (10%).